We have audited the accompanying standalone financialstatements of Cyient DLM Limited ("the Company"), which comprisethe Balance sheet as at 31 March, 2025, the Statement of Profit andLoss, including the statement of Other Comprehensive Income, theCash Flow Statement and the Statement of Changes in Equity for theyear then ended, and notes to the standalone financial statements,including a summary of material accounting policies and otherexplanatory information.
In our opinion and to the best of our information and accordingto the explanations given to us , the aforesaid standalone financialstatements give the information required by the Companies Act,2013, as amended ("the Act") in the manner so required and givea true and fair view in conformity with the accounting principlesgenerally accepted in India, of the state of affairs of the Company as at31 March, 2025, its profit including other comprehensive income, itscash flows and the changes in equity for the year ended on that date.
We conducted our audit of the standalone financial statementsin accordance with the Standards on Auditing (SAs), as specifiedunder section 143(10) of the Act. Our responsibilities under thoseStandards are further described in the 'Auditor's Responsibilitiesfor the Audit of the Standalone Financial Statements' section of ourreport. We are independent of the Company in accordance with the'Code of Ethics' issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to
our audit of the financial statements under the provisions of the Actand the Rules thereunder, and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and theCode of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our audit opinionon the standalone financial statements.
Key audit matters are those matters that, in our professionaljudgment, were of most significance in our audit of the standalonefinancial statements for the financial year ended 31 March, 2025.These matters were addressed in the context of our audit of thestandalone financial statements as a whole, and in forming ouropinion thereon, and we do not provide a separate opinion on thesematters. For each matter below, our description of how our auditaddressed the matter is provided in that context.
We have determined the matters described below to be the keyaudit matters to be communicated in our report. We have fulfilledthe responsibilities described in the Auditor's responsibilities forthe audit of the standalone financial statements section of ourreport, including in relation to these matters. Accordingly, our auditincluded the performance of procedures designed to respond to ourassessment of the risks of material misstatement of the standalonefinancial statements. The results of our audit procedures, includingthe procedures performed to address the matters below, providethe basis for our audit opinion on the accompanying standalonefinancial statements.
Key audit matters
How our audit addressed the key audit matter
Revenue recognition (as described in Note 20 of the standalone financial statements)
Revenue from contracts with customers is recognised, on the
Our audit procedures included the following:
basis of approved contracts, when control of the goods or services
• We evaluated the Company's accounting policies pertaining to
are transferred to the customer at an amount that reflects the
revenue recognition and assessed compliance with the policies
consideration entitled in exchange for those goods or services.
in terms of Ind AS 115 - Revenue from Contracts with Customers.
The Company has high sales volume at period end and has varied
• Tested the design and implementation of key internal financial
types of sales arrangements with customers including delivery
controls with respect to revenue recognition and tested
specifications and incoterms etc. which may affect the timing
operating effectiveness of such controls.
of transfer of risk and rewards and may lead to recognition of
• Performed substantive testing on a sample basis of revenue
revenue in incorrect periods.
transactions recorded during the year by checking theunderlying documents such as invoice, sales contracts andshipping documents to test evidence for satisfaction of thecriteria for recognition of revenue during the year.
We have identified recognition of revenue as a key audit matter
• Test checked significant manual journals posted to revenue
considering high sales volume at period end and there is risk
to identify any unusual items and sought explanations from
that revenue may not be recognised in the correct period or that
Management.
revenue is overstated.
• Test checked sales transactions near to year-end, post year-endand credit notes issued post year-end to determine whether therevenue recognition during the year is appropriate.
• We assessed the adequacy of relevant disclosures made withinthe standalone financial statements.
Inventory-obsolescence (as described in Note 9 of the standalone financial statements)
The Company holds an inventory balance of R4,844.79 million as
at 31 March, 2025.
• We obtained an understanding of how the management
Inventory obsolescence allowance is determined using
identifies the slow-moving and obsolete inventories and
policies/ methodologies that the Company deems appropriate
assesses the amount of allowance for inventories.
to the business. Significant judgement is exercised by the
• We assessed and tested the design and operating effectiveness
management in identifying the slow-moving and obsolete
of the Company's internal financial controls over the allowance
inventories and in assessing whether provision for obsolescence
for inventory obsolescence.
for slow moving, excess or obsolete inventory items should be
• We observed the inventory count performed by management
recognized considering the production plan, forecast inventory
and assessed the physical condition of the inventories on sample
usage, committed and expected orders, alternative usage, etc.
basis.
Considering that the aforesaid assessment process is complex and
involves significant estimates and judgements and the balance of
• We have assessed the management's evaluation of inventories
inventory is material, we have identified this as a key audit matter.
against future usage based on the expected orders on hand andother contractual terms agreed with customers and tested thesame on a sample basis.
• We further tested the ageing of the inventories and thecomputation of the obsolescence level on a sample basis.
• We have tested sample inventory items for significantcomponents to assess the cost and test the basis of determinationof net realizable value of inventory.
• We assessed the Company's disclosures concerning this in Note2.3 on accounting estimates and judgements and Note 9 oninventories to the standalone financial statements.
Valuation of investments (as described in Note 6A and Note 32.1.4 of the standalone financial statements)
As at 31 March, 2025, the Company has non-current investments of
R1,563.64 million. The valuation of such investments are significant
• We tested the design and operative effectiveness of
to audit, because of the materiality of the investments to the
management's key internal controls over valuation of
separate financial statements of the Company and the sensitivitythereof to the various unobservable valuation inputs, uncertainfuture cash flows and assumptions that require considerable
investments.
• We gained an understanding of and evaluated the methodologyused by management to prepare its cash flow forecasts and
judgement. The management assesses at least annually theexistence of impairment indicators of each investment. The
the appropriateness of the assumptions applied. In making thisassessment, we also evaluated the competence, professional
determination of recoverable amounts of the investmentsrelies on management's estimates of future cash flows and theirjudgement with respect to the investees' performance.
qualification, objectivity and independence of Company'sspecialists and Company's personnel involved in the process.
Accordingly, valuation of investments is considered a key audit
• With the assistance of our specialists, we assessed the
matter because of the assumptions on which the tests are based
assumptions on the key drivers of the cash flow forecasts
are highly judgmental and are affected by future market and
including discount rates, expected growth rates and terminal
economic conditions which are inherently uncertain, and because
growth rates used; in consideration of the current and estimated
of the materiality of the balances to the Standalone Financial
future economic conditions.
Statements as a whole.
• We assessed the historical accuracy of management's forecastby comparing actual financial performance to management'sprevious forecasts.
• We tested the arithmetical accuracy of the impairmentassessments models.
• We assessed the adequacy of the related disclosures in Note 2.3on accounting estimates and judgements and Note 6A and Note32.1.4 to the Standalone Financial Statements.
The Company's Board of Directors is responsible for the otherinformation. The other information comprises the informationincluded in the Annual report, but does not include the standalonefinancial statements and our auditor's report thereon.
Our opinion on the standalone financial statements does not coverthe other information and we do not express any form of assuranceconclusion thereon.
In connection with our audit of the standalone financial statements,our responsibility is to read the other information and, in doing so,consider whether such other information is materially inconsistentwith the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If, based onthe work we have performed, we conclude that there is a materialmisstatement of this other information, we are required to reportthat fact. We have nothing to report in this regard.
The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparationof these standalone financial statements that give a true and fairview of the financial position, financial performance includingother comprehensive income, cash flows and changes in equityof the Company in accordance with the accounting principlesgenerally accepted in India, including the Indian AccountingStandards (Ind AS) specified under section 133 of the Act readwith the Companies (Indian Accounting Standards) Rules, 2015,as amended. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisionsof the Act for safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities; selectionand application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; andthe design, implementation and maintenance of adequate internal
financial controls, that were operating effectively for ensuring theaccuracy and completeness of the accounting records, relevantto the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from materialmisstatement, whether due to fraud or error.
In preparing the standalone financial statements, management isresponsible for assessing the Company's ability to continue as agoing concern, disclosing, as applicable, matters related to goingconcern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to ceaseoperations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.
Our objectives are to obtain reasonable assurance about whetherthe standalone financial statements as a whole are free frommaterial misstatement, whether due to fraud or error, and to issuean auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance, but is not a guarantee that an auditconducted in accordance with SAs will always detect a materialmisstatement when it exists. Misstatements can arise from fraud orerror and are considered material if, individually or in the aggregate,they could reasonably be expected to influence the economicdecisions of users taken on the basis of these standalone financialstatements.
As part of an audit in accordance with SAs, we exercise professionaljudgment and maintain professional skepticism throughout theaudit. We also:
• Identify and assess the risks of material misstatement of thestandalone financial statements, whether due to fraud or error,design and perform audit procedures responsive to those risks,and obtain audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not detectinga material misstatement resulting from fraud is higher thanfor one resulting from error, as fraud may involve collusion,forgery, intentional omissions, misrepresentations, or theoverride of internal control.
• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriatein the circumstances. Under section 143(3)(i) of the Act, weare also responsible for expressing our opinion on whetherthe Company has adequate internal financial controls withreference to financial statements in place and the operatingeffectiveness of such controls.
• Evaluate the appropriateness of accounting policies usedand the reasonableness of accounting estimates and relateddisclosures made by management.
• Conclude on the appropriateness of management's use of thegoing concern basis of accounting and, based on the auditevidence obtained, whether a material uncertainty existsrelated to events or conditions that may cast significant doubton the Company's ability to continue as a going concern. If weconclude that a material uncertainty exists, we are requiredto draw attention in our auditor's report to the relateddisclosures in the financial statements or, if such disclosuresare inadequate, to modify our opinion. Our conclusions arebased on the audit evidence obtained up to the date of ourauditor's report. However, future events or conditions maycause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of thestandalone financial statements, including the disclosures, andwhether the standalone financial statements represent theunderlying transactions and events in a manner that achievesfair presentation.
We communicate with those charged with governance regarding,among other matters, the planned scope and timing of the auditand significant audit findings, including any significant deficienciesin internal control that we identify during our audit.
We also provide those charged with governance with a statementthat we have complied with relevant ethical requirements regardingindependence, and to communicate with them all relationshipsand other matters that may reasonably be thought to bear on ourindependence, and where applicable, related safeguards.
From the matters communicated with those charged withgovernance, we determine those matters that were of mostsignificance in the audit of the standalone financial statements forthe financial year ended 31 March, 2025 and are therefore the keyaudit matters. We describe these matters in our auditor's reportunless law or regulation precludes public disclosure about thematter or when, in extremely rare circumstances, we determine that
a matter should not be communicated in our report because theadverse consequences of doing so would reasonably be expectedto outweigh the public interest benefits of such communication.
1. As required by the Companies (Auditor's Report) Order, 2020("the Order"), issued by the Central Government of India interms of sub-section (11) of section 143 of the Act, we givein the "Annexure 1" a statement on the matters specified inparagraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report to theextent applicable, that:
(a) We have sought and obtained all the information andexplanations which to the best of our knowledge andbelief were necessary for the purposes of our audit;
(b) In our opinion, proper books of account as required bylaw have been kept by the Company so far as it appearsfrom our examination of those books, except for thematters stated in the paragraph 2 (i) (vi) below onreporting under Rule 11(g);
(c) The Balance Sheet, the Statement of Profit and Lossincluding the Statement of Other ComprehensiveIncome, the Cash Flow Statement and Statement ofChanges in Equity dealt with by this Report are inagreement with the books of account;
(d) In our opinion, the aforesaid standalone financialstatements comply with the Accounting Standardsspecified under Section 133 of the Act, read withCompanies (Indian Accounting Standards) Rules, 2015,as amended;
(e) On the basis of the written representations received fromthe directors as on 31 March, 2025 taken on record by theBoard of Directors, none of the directors is disqualified ason 31 March, 2025 from being appointed as a director interms of Section 164 (2) of the Act;
(f) The modification relating to the maintenance of accountsand other matters connected therewith are as stated inparagraph 2 (b) above on reporting under Section 143(3)(b) and paragraph 2 (i) (vi) below on reporting under Rule
11(g);
(g) With respect to the adequacy of the internal financialcontrols with reference to standalone financialstatements and the operating effectiveness of suchcontrols, refer to our separate Report in "Annexure 2" tothis report;
(h) In our opinion, the managerial remuneration for theyear ended 31 March, 2025 has been paid / provided
by the Company to its directors in accordance with theprovisions of section 197 read with Schedule V to the Act;
(i) With respect to the other matters to be included inthe Auditor's Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules, 2014, as amendedin our opinion and to the best of our information andaccording to the explanations given to us:
i. The Company does not have any pending litigationswhich would impact its financial position;
ii. The Company did not have any long-term contractsincluding derivative contracts for which there wereany material foreseeable losses;
iii. There were no amounts which were requiredto be transferred to the Investor Education andProtection Fund by the Company;
iv. a) The management has represented that, to the
best of its knowledge and belief, other thanas disclosed in the note 36 to the standalonefinancial statements, no funds have beenadvanced or loaned or invested (either fromborrowed funds or share premium or any othersources or kind of funds) by the Company toor in any other persons or entities, includingforeign entities ("Intermediaries"), with theunderstanding, whether recorded in writingor otherwise, that the Intermediary shall,whether, directly or indirectly lend or investin other persons or entities identified in anymanner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provideany guarantee, security or the like on behalf ofthe Ultimate Beneficiaries;
b) The management has represented that, tothe best of its knowledge and belief, no fundshave been received by the Company from anypersons or entities, including foreign entities
("Funding Parties"), with the understanding,whether recorded in writing or otherwise,that the Company shall, whether, directly orindirectly, lend or invest in other persons orentities identified in any manner whatsoeverby or on behalf of the Funding Party ("UltimateBeneficiaries") or provide any guarantee,security or the like on behalf of the UltimateBeneficiaries; and
c) Based on such audit procedures performedthat have been considered reasonable andappropriate in the circumstances, nothinghas come to our notice that has caused usto believe that the representations undersub-clause (a) and (b) contain any materialmisstatement.
v. No dividend has been declared or paid during theyear by the Company;
vi. Based on our examination which included testchecks, the Company has used accounting softwarefor maintaining its books of account which has afeature of recording audit trail (edit log) facility andthe same has operated throughout the year for allrelevant transactions recorded in the accountingsoftware except for direct changes to data madeusing certain access rights in accounting software,where the audit trail feature is enabled onlyduring the period 07 January, 2025 to 31 March,2025, as described in note 38 to the standalonefinancial statements. Further, during the course ofour audit we did not come across any instance ofaudit trail feature being tampered with, in respectof accounting software where the audit trail hasbeen enabled. Additionally, the audit trail of prioryear has been preserved by the Company as perthe statutory requirements for record retentionto the extent it was enabled and recorded in therespective year.
For S.R. Batliboi & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004
Per Shankar Srinivasan
Partner
Place of Signature: Hyderabad Membership Number: 213271
Date: April 22, 2025 UDIN: 25213271BMISPL2174